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Old 08-31-2011, 02:37 PM
 
Location: Conejo Valley, CA
12,470 posts, read 18,190,386 times
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Quote:
Originally Posted by jimhcom View Post
The suffering caused by the inflation, which was a result of the resolution of the war, was instrumental in the support of Hitler and the resulting wars.
The resolution of WW1 and the support of the extreme right by the business interests in Germany was instrumental to the support of Hitler. The high inflation after WW1 had little to do with it.....

Regardless, neither deflation nor inflation necessary lead to terrible things. The US experienced deflation before the depression and it didn't result in similar economic problems, for example the so called "Long Depression". Shifts in inflation have different results depending on the status of the economy. If debt levels are high (like in the 1920's and today) then deflation will kill the economy since it will increase the debt burden. On the other hand inflation will reduce the debt burden and improve the overall state of the economy. So what the other poster said is correct so long as debt levels are high, when debt is high inflation is better than deflation.
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Old 09-05-2011, 04:25 PM
 
28,665 posts, read 31,269,692 times
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Quote:
Originally Posted by newonecoming2 View Post
. There were two ways to end the great depression one was to get a totalitarian government the other was to have WWII. Inflation takes 17% interest rates to end it. I’ll take inflation over deflation.
This seem to be very "inside the box" thinking. This is how the elites want us so think...that there's no choice but between the 2 evils presented by the elite, who will make money on either scenario.
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Old 09-06-2011, 03:40 PM
 
2,515 posts, read 1,818,779 times
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Quote:
Originally Posted by mysticaltyger View Post
This seem to be very "inside the box" thinking. This is how the elites want us so think...that there's no choice but between the 2 evils presented by the elite, who will make money on either scenario.
What do you see as outside of the box?
Quote:
The Wörgl experiment that was conducted from July 1932 to November 1933 is a classic example of the potential efficacy of local currencies. Wörgl, a small town in Austria with 4000 inhabitants, introduced a local scrip during the Great Depression. By 1932 unemployment in Wörgl had risen to 30%. The local government had amassed debts of 1.3 million Austrian schillings (AS) against cash reserves of 40,000 AS. Local construction and civic maintenance had come to a standstill. On the initiative of the town's mayor, Michael Unterguggenberger, the local government printed 32,000 in labor certificates which carried a negative 1% monthly interest rate and could be converted into schillings at 98% of face value. An equivalent amount in schillings was deposited in the local bank as cover for the certificates in case of mass redemption and earned interest for the government. The certificates circulated so rapidly that only 12,000 were ever actually put into circulation. According to reports by the mayor and economists of the day who studied the experiment, the scrip was readily accepted by local merchants and the local population. It utilized the scrip to carry out 100,000 AS in public works projects involving construction and repair of roads, bridges, tanks, drainage systems, factories, and buildings. The scrip was also accepted as legal tender for payment of local taxes. In the one year that the currency was in circulation, it circulated 13 times faster than the official shilling[citation needed] and served as a catalyst to the local economy. The heavy arrears in local tax collection declined dramatically. Local government revenue rose from 2,400 AS in 1931 to 20,400 in 1932. Unemployment was eliminated, while it remained very high throughout the rest of the country. No increase in prices was observed. Based on the dramatic success of the Wörgl experiment, several other communities introduced similar scrips..
from here Local currency - Wikipedia, the free encyclopedia They got full employment without having the prices go up. This is outside of the box that the moneyed few like us to think in. What I have talked about, a 4X on the minimum wage, taxing the principle on debt, printing money and giving it to everyone, setting up a national savings plan in banks and a few other things like keying the top tax rate to the total debt in the US should duplicate on a national scale what was done with this local currency experiment.
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Old 09-12-2011, 08:24 AM
 
Location: San Diego California
6,797 posts, read 6,625,449 times
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Today is 9/12 and the futures are way down, on Greece default fears. Looks like a good day to put in some buy orders at really low prices.
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Old 09-12-2011, 08:36 AM
 
11,689 posts, read 16,411,904 times
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Quote:
Originally Posted by jimhcom View Post
Demographic Trends Show Another Lost Decade Ahead | Michael Shedlock | FINANCIAL SENSE

This article makes the case that P/E ratios are heading lower going forward. Do you think the author makes a reasonable case?
many companies stocks are already trading under P/E of 10.

It depends on the S&P earnings.
Estimates are from a worst case low of 88 to a high of 105 for the coming year.
That makes for a wide possible range for the S&P.

Using round numbers a P/E of 10 and earnings of $95 = S&P 950.
We are 1154 now, so down 20% more if earnings come in that low.
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